Female entrepreneurship in South Africa
Women represent more than half of South Africa’s population. Even so, their participation in the business sector remains significantly low. According to the Global Entrepreneurship Monitor 2016/2017, the highest female rates in South Africa occur among those 45-54, showing entrepreneurship undertaken primarily in late career stage. The low overall female entrepreneurship rate is explained by the relative lack of participation among the two youngest age groups—those 18-24 and those 25-34. The high unemployment rate among women currently being approximately 32% of the total labour force makes them the most vulnerable population group in the country. Entrepreneurship is a safe career path for most women in South Africa who are the main breadwinners mainly in rural areas.
Gender disparities in the country have always been a hindrance to the career development of women: poor access to business opportunities and information, educational gap, limited skill set, high wage inequalities, lack of capital and assets, low self-esteem and confidence, limited business networks. On another note, gender bias and stereotypes create the idea of a perfect businesswoman in a male-dominated industry setting a very highly competitive standard where women entrepreneurs must deal with numerous challenges without being daunted at the same time. Conflicts and discrimination at the workplace, imbalances between work and family responsibilities, time pressure, stress, anxiety and mental tiredness undermine women’s entrepreneurial progress.
Women in the Small, Micro- and Medium Enterprises sector
The Rainbow Nation must recognize the massive involvement of females in entrepreneurship, therefore the boost of the country’s economic growth. Small, micro- and medium enterprises (SMMEs) successfully managed by South African female entrepreneurs contribute to the economic development within the country not only by creating income and employment, reducing poverty and providing economic stability but also by reducing crime rates, and supporting and empowering the community. The 2015 Female Entrepreneurship Index (FEI) developed by the Global Entrepreneurship and Development Institute (GEDI), the world’s first diagnostic tool that comprehensively identifies and analyses the conditions that foster high potential female entrepreneurship development, ranked South Africa 36th among 77 countries worldwide. Entrepreneurial environment (spirit, culture and institutions that support start-ups), eco-system (access to resources and institutions) and aspirations (individual entrepreneurial characteristics, resources availability) shape the index which showed that South Africa has a fairly strong entrepreneurial environment but rather a weak eco-system as well as aspirations.
Female entrepreneurial success stories